Is it permissible to join a sports tournament with an entry fee?

Is it allowed to enter a sports tournament with an entry fee? If so, then is the prize money halal? If it is not halal, can someone enter with the intention of playing for fun with friends? And if they do win the prize money, is it halal in this case?

It is permissible to pay a fee to play in a game as long as it does not amount to extravagance, it is also permissible to receive prize money from the entity that is in charge of the game.

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